In the latest development in the U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs (TFL) and Do Kwon, the SEC has asked the court for summary judgment. The SEC argues there is undisputed record evidence that Do Kwon and TFL violated securities and exchange laws, defrauding investors of $45 billion.
SEC Requests Summary Judgment Against Terra and Do Kwon
In a court filing late November 2, the U.S. Securities and Exchange Commission filed a motion for summary judgment in the lawsuit against Terra and Do Kwon.
The SEC argues that Terraform and Do Kwon created the Terra blockchain and related crypto asset securities, marketed crypto assets such LUNA (now LUNC), wLUNA, and UST as securities, and engaged in the public offering of LUNA. In addition, the defendants sold LUNA and MIR directly into public trading markets, while misleading and deceiving investors about Chai and depegging events in 2021 and 2022.
“Summary judgment is appropriate when the record shows that there is no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.”
The SEC seeks summary judgment on all its claims including TFL and Do Kwon sold securities, purchasers of these Terra securities invested in common enterprise, strict vertical commonality, reasonable expectation of profits derived from the entrepreneurial or managerial efforts, and defendants committed fraud.
Terra Seeks Summary Judgment To Dismiss the Lawsuit
Earlier, Do Kwon and Terraform Labs urged the court to dismiss the lawsuit on claims that Terra Classic (LUNC), TerraClassicUSD (USTC), Mirror Protocol (MIR), and its mirrored assets (mAssets) are not securities. Moreover, there is no evidence to prove Bitcoin transferred to a Swiss bank for personal gains.
Terra (LUNA) and Terra Classic (LUNC) prices fell more than 4% and 2% in the last 24 hours. Investors remain skeptical of investing in Terra ecosystem tokens amid the recent fall in prices.
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